The ability to bring these value-added services to policyholders ultimately drives more consumers to download an insurer’s mobile app and engage with them on a more frequent basis. (Credit: PHOTOBUAY/Shutterstock.com) The ability to bring these value-added services to policyholders ultimately drives more consumers to download an insurer’s mobile app and engage with them on a more frequent basis. (Credit: PHOTOBUAY/Shutterstock.com)

Price will always be an important competitive factor for insurance companies, regardless of their distribution model or value proposition. Today, auto coverage rates are steadily rising, driven by factors ranging from annual increases in vehicle miles traveled to skyrocketing costs for damaged vehicle transport, storage and repair, which are all influencing claims expenses. As such, it will become increasingly competitive — and more difficult — for insurers to win the hearts, minds and wallets of new policyholders.

Tom Super, head of property & casualty insurance at J.D. Power, said: “Ironically, while the industry’s estimated annual ad spend now nears $10 billion, consumers say they see less differentiation among the top brands. Following a period of massive disruption and a prolonger, uneven recovery, auto insurance customers have a heightened expectation about factors such as price, flexibility and coverages. Insurers need to get more creative around customer service and delivery because the current incremental changes are missing the mark.”

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.